“PON (passive optical network) was the only broadband aggregation equipment category to grow in the third quarter of 2014 (3Q14), and it was up just 1% sequentially, led by 2.5G GPON ONT increases in North America,” says Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. “From the year-ago third quarter, PON is up a nice 20% globally.”

Heynen adds: “DSL aggregation equipment revenue was down 6% quarter-over-quarter in 3Q14. The third quarter is an inconsistent one, with some regions ramping spending while others brake expenditures ahead of fourth quarter budget flushes. And last quarter’s 19% sequential jump in revenue probably sealed Q3’s fate. The good news is that fourth quarter spending should increase solidly.”

BROADBAND MARKET HIGHLIGHTS

The global broadband aggregation equipment market (DSL, PON, and Ethernet FTTH) is down 1% in 3Q14 from 2Q14, to $2 billion

Q3 was a mixed bag for regional investment: Spending on broadband aggregation gear increased in Asia Pacific and North America, but declined in EMEA (Europe, Middle East, Africa) and CALA (Caribbean and Latin America)

4Q14 is anticipated to be a dynamic one for the North American region, with Connect America Fund (CAF) projects getting underway on one hand, while on the other AT&T and other service providers threaten to halt broadband rollouts until there is more clarity on pending net neutrality legislation